EV Uptake is Undercutting Demand for Oil in Notable Markets 

The global energy landscape is changing, and electric vehicles are at the center of this shift. As more countries embrace batteries and clean transport, the demand for oil is beginning to weaken. What once looked like a distant possibility is now visible in real numbers, especially in markets leading the electric vehicle transition. 

One of the clearest examples is Norway. Nearly all new cars sold there are electric, and this rapid adoption has already caused fuel consumption to fall. Between 2021 and 2024, gasoline and diesel use dropped by 12 percent. China, the world’s largest oil importer, is showing the same trend. Electric cars, which are often cheaper than traditional combustion cars, already make up half of the market. Analysts estimate that oil consumption in China will drop by around 600,000 barrels per day this year alone, proving that electrification has an immediate effect on fuel demand. 

Oil use can be divided into four main areas, and electrification is quickly eating into the first one; light transport, such as cars and vans. This sector is the easiest to replace with electric alternatives and is already feeling the impact. Heavy transport, including trucks, ships, and airplanes, is slower to change, but progress is underway. 

Electric trucks are becoming common in China, while cleaner fuels like sustainable aviation fuel and methanol are gaining ground in shipping and aviation. Petrochemicals, on the other hand, are still growing, and other uses of oil, such as bitumen for road building and power generation in some regions, will take more time to decline. 

The lesson is clear: once cars and vans are electrified, the rest of the oil market begins to feel pressure. Experts believe that heavy transport will follow within years, and eventually petrochemicals and other uses will also face alternatives. This shift is not only about technology but also about economics and strategy. 

Countries that rely heavily on oil imports, such as those in Europe, have strong incentives to accelerate electrification. Doing so helps them cut their carbon emissions, save billions on imports, and reduce dependence on politically unstable suppliers. 

The trend is not limited to Northern Europe and China. In India, about one in five new mopeds is already electric. In Vietnam, one in three new vehicles runs on batteries, while in Turkey, one in seven cars is electric, many built locally. As technology improves, with cheaper prices and better driving range, adoption will only grow. 

Even with some political resistance, especially in the United States, the direction is clear. The world is moving toward electric transport, and oil demand in many markets is beginning a steady decline. What was once seen as a long-term goal is now becoming the reality of global energy. 

People that once thought proponents of EV makers like Lucid Motors (NASDAQ: LCID) touting the eco benefits of electrification were simply hyping these new vehicles are now beginning to see the tangible effects of electric vehicles on curbing carbon emissions. 

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